LVMH Moët Hennessy Louis Vuitton posted a +10% revenue increase to €21.8bn ($25.5bn) in H1 2018 from €19.7bn ($23bn) during the previous corresponding period in 2017.

The Selective Retailing division, which includes travel retailer DFS Group registered organic revenue growth of +9% (excluding the closure of its Hong Kong Airport Concessions) to €6.33bn from €6.28bn in H1 2017. Profit from recurring operations increased +39% to €612m from €441m during the same period the previous year.

A significant sales recovery in Hong Kong, Macau and Japan, successful openings of Gallerias in Cambodia and Venice, positive start for the re-opened Galleria in Sydney and overall rebound of profitability, all boosted DFS in the first half of the year.

LVMH said: “DFS enjoyed an excellent start to the year. Performance was particularly good in Hong Kong and Macau while its Gallerias, recently opened in Cambodia and Italy, made remarkable progress. The termination of the loss-making Hong Kong International Airport concessions at the end of 2017 contributed to the strong rebound of profitability.”

ONGOING RENOVATIONS

Looking ahead, LVMH suggests the ongoing renovation of DFS’ flagship stores in Canton Road (Hong Kong) and San Francisco International Airport, along with the enhancement of customer relations and digital marketing are key elements of its strategy.

In terms of overall LVMH performance, highlights included double-digit increases in revenue and profit from recurring operations. This rose +28% from €3.64bn in H1 2017 to €4.65bn in H1 2018. Operating profit was up +29% to €4.65bn from €3.55bn in H1 2017 and there was strong growth of +18% in Asia (excluding Japan) and +10% in the US in the first half of the year.

Bernard Arnault, Chairman and CEO of LVMH commented: “The excellent results of the first half of the year attest to the strong desirability of our brands and the effectiveness of our strategy. The performance of the first half is even more remarkable given the unfavourable currency environment.

“The standards of quality and creativity required from our maisons, which combine both modernity and tradition, are key to LVMH’s success, always driven by a long-term vision. Despite buoyant global demand, monetary and geopolitical uncertainties remain.

“In this context, we will stay vigilant and rely on the talent of our teams and the shared entrepreneurial passion to further increase our leadership in the world of high quality products in 2018.”